# McGraw Hill, Inc. (MH)

> Source: Nexqual · https://nexqual.com/MH · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, McGraw Hill, Inc. (MH), nexqual.com/MH" · informational, not investment advice.

**Price:** USD 14.8 (+1.93% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 14.52 · day 14.29–14.88 · 52w 8.95–18 · market cap $2.83B · NYQ

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $2.12B, net income $92.7M (4.4% margin), free cash flow $336M (SEC filings).
- Valuation: P/E 30.6x (avg 71.2x at the last 1 fiscal year-ends), EV/EBITDA 8.0x, net debt $2.38B.
- Insider open-market purchases, last ~7 months: 1 Form 4 filing, $249K; 0 by opportunistic insiders, 0 by routine insiders.
- Analysts: Buy (mean 1.85 on a 1–5 scale) (13 analysts), mean target USD 17.92 (range 15–24).
- Total return with dividends: 1Y +17.3% vs S&P 500 +14.9%; 5Y -12.0% vs S&P 500 +80.3%.
- Next earnings: 2026-11-05, EPS estimate USD 0.72, revenue estimate $629M.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2024 | FY2025 | FY2026 | TTM |
|---|---|---|---|---|
| Revenue | $1.96B | $2.10B | $2.10B | $2.12B |
| Gross profit | $1.54B | $1.68B | $1.70B | — |
| Operating income | $155M | $307M | $277M | $295M |
| Net income | -$193M | -$85.8M | $35.3M | $92.7M |
| EPS (diluted) | -$1.16 | -$0.52 | $0.19 | — |
| Free cash flow | $154M | $575M | $246M | $336M |
| Gross margin | 78.6% | 79.9% | 80.9% | — |
| Operating margin | 7.9% | 14.6% | 13.2% | 13.9% |
| Net margin | -9.8% | -4.1% | 1.7% | 4.4% |
| Revenue growth | — | +7.2% | +0.1% | — |
| Cash + short-term investments | $204M | $390M | $254M | — |
| Total debt | — | $3.18B | $2.57B | — |
Fiscal years end Mar. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/E 30.6x · P/S 1.3x · EV/EBITDA 8.0x · EV/Sales 2.5x · P/FCF 8.4x · P/B 3.6x · FCF yield 11.86% · Earnings yield 3.27% · Net debt $2.38B · EV $5.21B
P/E at fiscal year-ends: Mar 2026 71.2x.

## Insider purchases (SEC Form 4, open-market, last ~7 months)
1 purchase, $249K. Private placements, offerings, dividend reinvestment and employee stock purchase plan buys are excluded.
| Trade date | Insider | Role | Shares | Value | Avg price | Insider type |
|---|---|---|---|---|---|---|
| 2026-06-15 | Moyer Philip D | See Remarks | 22,421 | $249K | 11.12 | Too little history (no open-market trades in 2023–2025) |
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Analysts
Consensus Buy (mean 1.85 on a 1–5 scale), 13 analysts; mean target USD 17.92 (low 15, high 24).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-09-22 | BTIG | Reiterated | Buy | $17 |
| 2026-08-14 | UBS | Target raised | Neutral | $14 → $15 |
| 2026-08-14 | Morgan Stanley | Target lowered | Overweight | $18 → $16 |
| 2026-08-14 | BMO Capital | Target raised | Outperform | $16 → $17 |
| 2026-08-14 | BTIG | Target lowered | Buy | $19 → $17 |
| 2026-08-13 | Needham | Reiterated | Buy | $19 |
| 2026-08-03 | Needham | Reiterated | Buy | $19 |
| 2026-07-06 | BMO Capital | Target lowered | Outperform | $19 → $16 |
| 2026-06-26 | BTIG | Reiterated | Buy | $19 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2025-07-21) |
|---|---|---|
| Total return | +17.3% | -12.0% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | +17.3% | -9.6% |
| Volatility (annualized) | 59.9% | 54.6% |
| Max drawdown | -49.4% (Nov 2025→Jul 2026) | -45.9% (Nov 2025→Jun 2026) |

## Peers (Education & Training Services)
LRN (Stride, Inc.) USD 80.68 +5.62% · DAO (Youdao, Inc.) USD 19.35 +4.59% · XXI (Twenty One Capital, Inc.) USD 5.61 -4.75% · PRDO (Perdoceo Education Corporation) USD 33.82 +3.14% · LOPE (Grand Canyon Education, Inc.) USD 165.46 +3.57% · STRA (Strategic Education, Inc.) USD 81.59 +2.56%

## More
Full page: https://nexqual.com/MH · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Revenue by business segment (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| K-12 | $274.4M | 49.9% | +1.3% |
| Higher Education | $199.8M | 36.3% | +9.6% |
| International | $45.2M | 8.2% | -12.1% |
| Global Professional | $34.8M | 6.3% | -1.0% |
| Total revenue | $549.9M | 100% | — |

## Revenue by product line (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Re-occurring Revenue | $196.6M | 35.8% | +7.1% |
| Print | $160.5M | 29.2% | -1.1% |
| Digital | $113.9M | 20.7% | +4.9% |
| Transactional Revenue | $77.8M | 14.1% | -10.9% |
| Shipping and Handling | $6.2M | 1.1% | -9.4% |
| Total revenue | $549.9M | 100% | — |

## Revenue by region (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| United States | $504.7M | 91.8% | +4.2% |
| Non-US | $45.2M | 8.2% | -11.9% |
| Total revenue | $549.9M | 100% | — |

## Customer concentration

Period ended 2026-06-30: 11% of revenue from unnamed direct customers (10-Q, filed 2026-08-13).

## Company outlook (8-K filed 2026-08-13)

- "We are re-affirming our fiscal year 2027 guidance, which is included below."
- "This fiscal year 2027 guidance is forward-looking and is based on the Company's current expectations."
- "Fiscal Year 2027 Guidance ($ in millions) Low High Revenue $ 2,115 $ 2,175 Re-occurring Revenue 1,587 1,627 Adjusted EBITDA (1) 750 790 Earnings Conference Call and Webcast Today, August 13, 2026, at 8:30 a.m."

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $0.72 | $0.83 | -13.8% | $629.3M | 12 |
| Next quarter (ends 2026-12-31) | $0.30 | $0.28 | +6.9% | $460.1M | 12 |
| Current fiscal year (ends 2027-03-31) | $1.97 | $1.95 | +1.0% | $2.15B | 13 |
| Next fiscal year (ends 2028-03-31) | $2.08 | $2.04 | +1.7% | $2.25B | 13 |

## Options: expected move (Cboe, 15-min delayed)

Expected move by 2026-11-20 (includes earnings 2026-11-05): ±21.8%; last 5 reports averaged ±13.7%.

| Expiration | Days | ATM IV | Expected move |
|---|---|---|---|
| 2026-11-20 | 28 | 95.9% | ±21.8% |
| 2026-12-18 | 56 | 89.3% | ±28.5% |
| 2027-01-15 | 84 | 65.7% | ±25.2% |
| 2027-04-16 | 175 | 76.5% | ±41.4% |